The SWD recently announced the tuition fee for the first semester of the academic year 2020-21, with students seeing a nine per cent increase compared to last year. This was in keeping with the pre-announced tuition fee revision1. A sizeable section of the student body has opined that the institute’s expenditure should be much lower next semester, given its online nature. Many students have been asking the institute to be more transparent regarding fee expenditure, and related finances, while some have reached out to journalists to amplify their concerns. On July 24, Nidhi Taneja—a journalist at India TV—tweeted2:
From a BITS Pilani student, Rajasthan: “Our administration has made a major fee hike for the upcoming semester. Last sem our fees was 178000 per semester and now it has been revised to 194000 per semester and the semester is to be conducted completely online”. @govinddotasra
The English Press Club analysed NIRF’s (National Institutional Ranking Framework) 2020 report, to gain insight into the institute’s expenditure3. This data includes the consolidated expenses of all the three Indian campuses.
The total expenditure incurred in the financial year (FY) 2018-19 was ₹489.22 crores. It was split into capital and operational expenses, amounting to ₹83.02 crores (16.97%) and ₹406.2 crores (83.03%) respectively. The capital expenditure on academic activities and resources includes the costs associated with running and maintaining the library, procurement of laboratory equipment, workshop tools, and other capital assets (excluding expenditure on land and buildings). The operational expenditure comprises salaries of both teaching and non-teaching staff, maintenance of academic infrastructure (excluding hostel maintenance, rent, and depreciation costs), and seminars and conferences. Staff salaries alone account for ₹236.27 crores of the operational expenses.
The institute also uses the money in various other avenues. Some of these include pension for retired staff members, gratuity for the staff members who have left the institute and medical facilities for staff and students4. In FY 2017-18, the institute awarded ₹6.45 crores as scholarships to children of staff members for education at the institute and local schools. Furthermore, 3,354 students received financial assistance from institute sources—Merit, MCN, and SAF (Students’ Aid Fund) scholarships—amounting to ₹23.96 crores.
As of October 31, 2018, the total investment corpus stood at approximately ₹280 crores, divided into bank FDs (93.22%), and mutual funds and shares (6.78%). According to the 2018 Annual Report, income exceeded expenses by ₹108.83 crores. Data on the institute’s income is not available to the students—one can only speculate on what portion of the tuition fee, WILP revenue, government grants, and other income streams is spent on the various expenditures and investments of the institute.
If present trends are to continue, the above chart indicates that the institute’s expenditure will increase this financial year as well. Whether the pandemic and the subsequent shift to an online semester will lead to significant changes in the infrastructure and salary spending remains to be seen. As of July 28, changes to the hostel and mess charges have yet to be announced. More accurate estimates of the same will be possible only after the institute provides further clarity on the functioning of the online semester and the changes henceforth.
Earlier this week, EPC reached out to the Department of Accounts and Finance to understand the changes in institute spending for an online semester, and possibly acquire more information on sources of revenue, and get a breakdown of the tuition fee. However, they declined to comment as the data was ‘confidential’.
References:
- Fee Structure (2019-20). (n.d.). Retrieved July 28, 2020, from https://www.bitsadmission.com/fdfee201920.aspx
- Taneja, N. (2020) 24 July. Available at: https://twitter.com/nidhiindiatv/status/1286563592095989761 (Accessed July 27, 2020)
- NIRF Full Report BITS Pilani (Rep.). (2019, December 14). Retrieved July 28, 2020, from NIRF, MHRD website: https://www.bits-pilani.ac.in/Uploads/University_Upload/NIRF/NIRF2020/Overall_Submission.pdf
- BITS-Pilani Annual Report 2018 (Rep.). (n.d.). Retrieved July 28, 2020, from BITS-Pilani website: https://www.bits-pilani.ac.in/uploads/Goa_Upload/Annual%20Report_2018.pdf. Note: The 2019 Annual Report has not been released yet.